Firstsource Q2 net up 68%

Higher volume growth in customer management and healthcare, and growth in the core regions of the US, UK and Asia, drove business process outsourcing provider Firstsource Solutions’ second quarter net profit and revenue.

Net profit for the quarter was up 68 per cent to Rs 35.9 crore from Rs 21.4 crore in the same quarter last year. Sequentially, it was up 24 per cent. This was primarily due to ramp-ups and operational efficiency. Revenue for the quarter was Rs 717.6 crore, up 34.6 per cent from Rs 533 crore in the same quarter last year and up 6.3 per cent sequentially. The volume growth was offset by contraction in the segment of banking, financial services and insurance, due to collections, and a payment delay in the healthcare provider segment.

“Our results reflect strong operational performance, as we continue to stay focused on profitable growth. Our margins would have been better but due to high cost of growth, it has been under pressure,” said Rajesh Subramaniam, MD.